consumer preference towards health insurance
DESCRIPTION
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DECLARATION BY STUDENT
I hereby declare that the project report entitled “A Study on Consumer preference towards Health Insurance”. It is the original work done by me as per the requirement of the curriculum of the degree of MBA course of SRM UNIVERSITY and submitted to SRM SCHOOL OF MANAGEMENT.
It has not been previously submitted for the award of any other degrees or courses or fellowship. This is done in partial fulfilment for the requirement for the award of the degree of MBA of SRM UNIVERSITY for the academic year 2009-2010. PLACE : CHENNAI NAME : ANOOP KUMAR SINGH DATE : Regd. No : 35080050
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CERTIFICATE BY COLLEGE
This is to certify that MR. ANOOP KUMAR SINGH bearing Regd. No: 35080050 a bonafied student of SRM SCHOOL OF MANAGEMENT has prepared and completed his dissertation Research work under the guidance of Prof. Dr. R. VELU. “A Study on Consumer preference towards Health Insurance”, a study conducted at BAJAJ CAPITAL INSURANCE BROKING LTD,(a unit of BAJAJ CAPITAL LTD.) of Rajajinagar branch at BANGALAORE.
This is done in partial fulfilment for the requirement for the award of the degree of MBA of SRM UNIVERSITY for the academic year 2009-2010. PLACE : CHENNAI NAME: DATE :
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BONAFIED CERTIFICATE
This is to certify that MR. ANOOP KUMAR SINGH bearing Regd. No: 35080050 is a
bonafied student of SRM SCHOOL OF MANAGEMENT has prepared and completed
his dissertation project work entitled “A Study on Consumer preference towards Health
Insurance”, a study conducted at BAJAJ CAPITAL INSURANCE BROKING LTD,
Rajajinagar Branch at BANGLAORE .
This is done in partial fulfilment for the requirement of the award of the degree of MBA
of SRM UNIVERSITY for the academic year 2009-2010.
PROJECT GUIDE SIGNATURE OF H.O.D
Dr. R. VELU (Professor)
D.P.Tech., M.A., M. Phil., MBA, Ph.D.
PLACE : CHENNAI NAME: DATE :
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ACKNOWLEDGEMENT
This project report is a sincere attempt to carefully and systematically gather fact’s about and evaluate the consumer preference and market research of M/s BAJAJ CAPITAL INSURANCE BROKING LTD. (a unit of BCL) at Rajajinagar Branch, Bangalore, as a part of the course curriculum of Master of Business Administration (MBA) degree, of SRM UNIVERSITY which is based on Eight weeks duration. For the completion of my project report many person directly or indirectly have assisted me. At first, I would like to express my sincere thanks and deep gratitude to my esteemed guide Prof Dr.R.Velu, SRM, School of Management for his kind initiative, guidance and valuable suggestion without which this project would not meet its objective.
I also express my per found sense of gratitude to Dr Jayshree Suresh, SRM, University who guided me at every step of my project. His proper direction and constant inspiration provide to be an asset for this project. I am also grateful to Mr. PRATEEK S SETH– Zonal Manager, Bajaj Capital Ltd, Bangalore. Who have given me an opportunity to conduct my research and complete my project in esteemed organization of BCBIL (A unit of Bajaj Capital). Words are too little to express my gratitude to him. I would also like to thank – Mr. Sadanandah H, Mr. Ashwin Kumar S., and all the other members and staffs of BCIBL (a unit of BCL) for their guidance and kind Co-operation to compile my project. Last but not the least I would like to thank to all my friends who actively supported and contributed me in preparation of this project. Their contributions are highly appreciated. Since the reader would like to know the general details of GENERAL INSURANCE – HEALTH INSURANCE, therefore, chapter includes a discussion of theoretical aspects and its application is included. Further to help the reader to understand the finding with graphical representation, conclusions and suggestions are also included, which very much helps to know that where BCIBL., stands in the HEALTH INSURANCE. I hope this report will be special interest to the marketing students, who are on look for such real life situations beyond their classroom studies.
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ANOOP KUMAR SINGH
ABSTRACT
The Insurance is a contract. Paying of the sum assured on the happening of the risk. Risk = un
predicted stages in life. It not only insures the future financial operations but also to beat the
inflation and make sure that one can appreciate its money value in future. The most challenging
phase in the life stages are: To meet current and recurring expenses, to take care of children
needs. Build Capital Assets like House or car and over all remain healthy and fine.
A family continues to have these financial needs, whether we survive or not. The insurance
industry has eased the planning and makes an individual to achieve the goals of life. A Life
Insurance with high premium compensate for the life. The Health Insurance minimizes the risk
which are not covered by Life insurance like accident (where the victim is injured but not dead),
or any hospital expenses pertaining to insured health. In India Insurance companies are growing
rapidly and entry of private players in the market has added lot more competition in the industry,
but Banks are not authorized to enter in insurance business, for that they tie – up with any
insurance firm that is called “Banc assurance”. Banc assurance is the selling of insurance and
banking products through the same channel, most commonly through bank branches.
The aims of this project are to analyses the preference of consumer (investors) towards Health
Insurance and then analyze the performance of Health Insurance in the market.
This project is intended to have an understanding of consumer preference towards various
investment options and a comprehensive study about the performance of Health Insurance Plan.
The project deliverable aims at providing a document which gives an overview of its
performance, its importance to the company and how its influence the decision of investors.
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We define marketing research as the systematic design, collection, analysis, and reporting of data
and findings relevant to a specific marketing situation facing the company.
The findings of this project were that there is a gap of selling of product in the city as the
Bangalore city police chart shows the number accidents are much above the dead. There should
active involvement of marketing team making people aware of the Health Insurance benefits and
the premium paid which are taxes deductable up to Rs.15000 (Rs. 20000 for senior citizen) under
sec 80(D). Company should give special training to their insurance consultants time by time.
There should be some arrangement of telecasting their products in regional television in order to
reach the effectively and efficiently to the people.
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TABLE OF CONTENT
CHAPTER TITLE PAGE NO.
TITLE PAGE 1
COMPANY CERTIFICATE 2
BONAFIDE CERTIFICATE 3
ACKNOWLEDGEMENT 4
DECLARATION 5
1 1.1 INTRODUCTION 10
1.2 STATEMENT OF PROBLEM 22
1.3 OBJECTIVE OF STUDY 23
1.4 SCOPE OF STUDY 23
1.5 LIMITATIONS OF STUDY 24
2 2.2 COMPANY PROFILE 25
2.3 PRODUCT PROFILE 36
3 3.1 RESEARCH METHODOLOGY 38
3.2 DATA COLLECTION 39
3.3 POPULATION SIZE 40
3.4 SAMPLE SIZE 40
3.5 STATISTICAL TOOL 41
4 DATA ANALYSIS & INTEREPRETATION 42
5 5.1 FINDING 59
5.2 SUGGESTION & RECOMMENDATION 61
5.3 CONCLUSION 64
APPENDIX – I 67
APPENDIX – II 69
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CHAPTER 1
INTRODUCTION
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CHAPTER 1
Consumer Preference towards Health Insurance
1.1 INRTODUCTION
The General Insurance business in India, can trace its roots to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in
Calcutta by the British. Some of the important milestones in the general insurance
business in India are.
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1stJanuary.
1973: 107 insurers amalgamated and grouped into four companies viz.
1) The National Insurance Company Ltd.
2) The New India Assurance Company Ltd.
3) The Oriental Insurance Company Ltd. and
4) The United India Insurance Company.
General Insurance Companies was incorporated as a company.
Non-Life Insurance Market:
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In December 2000, the General Insurance Companies subsidiaries were restructured as
independent insurance companies. At the same time, General Insurance Companies was
converted into a national re-insurer. In July 2002, Parliament passed a bill, declining the four
subsidiaries from General Insurance Companies.
Presently there are 12 general insurance companies with 4 public sector companies and 8 private
insurers. Although the public sector companies still dominate the general insurance business, the
private players are slowly gaining a foothold. According to estimates, private insurance
companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of
2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants
reported losses in the first year of their operation in 2001.
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Non - Life Insurance Companies Performance at Glance
INSURER
Gross Premium in
Crore
Percentage
growth in
a year
Market Share
during 2007-
2008 2007-2008 2006-2007
ORIENTAL INSURANCE 3,855.61 3,928.66 -1.86 13.62
UNITED INDIA INSURANCE 3,738 3,498.77 6.36 13.21
NATIONAL INSURANCE COMPANY 4,030.80 3814.42 5.69 14.24
NEW INDIA ASSURANCE COMPANY 5,274.14 5019.19 5.08 18.63
ROYAL SUNDARAM GENERAL
INSURANCE 695.16 600.58 15.75 2.46
ICICI-LOMBARD INSURANCE 3,344.69 3000.49 11.47 11.82
RELIANCE GENERAL INSURANCE 1,946.42 912.31 113.35 6.88
BAJAJ ALLIANZ GENERAL
INSURANCE 2404.34 1803.34 33.33 8.49
IFFCO-TOKIO GENERAL INSURANCE 1,235.83 1150.32 7.43 4.37
TATA AIG GENERAL INSURANCE 313.39 741.56 9.69 2.87
CHOLAMANDALAM GENERAL
INSURANCE 563.67 314.59 79.18 1.99
HDFC ERGO GENERAL INSURANCE 2.16.58 190.16 13.89 0.77
FUTURE GENERALI* 10.64 0.00 0.00 0.04
STAR HEALTH & ALLIED INSURANCE
COMPANY LTD. � 173.30 22.51 668.68 0.61
UNIVERSAL SOMPO* 0.48 0.00 0.00 0.00
APOLLO DKV HEALTH & PERSONAL
ACCIDENTS � 2.98 0.00 0.00 0.01
PRIVATE TOTAL (12) 11,407.30 8738.32 30.53 40.30
PUBLIC TOTAL (4 ) 16809.49 16259.04 3.94 59.70
*Future Generali, Universal Sompo and Apollo DKV Insurance Commenced business during 2007-08. � Star Health, Apollo DKV are Standalone Health Insurance Companies.
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Source IRDA website (RNI, June 2008)
Re‐insurance business:
Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which
can be safely borne from their own funds. The balance risk is re-insured with other insurers. In
effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance
business. It helps to provide a better spread of risk in the international market, allows primary
insurers to accept risks beyond their capacity settle accumulated losses arising from catastrophic
events and still maintain their financial stability.
While General Insurance Companies subsidiaries look after general insurance, General Insurance
Company Ltd (India) itself has been the major reinsurer. Currently, all insurance companies have
to give 20 per cent of their reinsurance business to General Insurance Companies. The aim is to
ensure that General Insurance Companies role as the national reinsure remains unhindered.
However, General Insurance Companies reinsures the amount further with international
companies such as Swiss (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance
premiums have seen an exorbitant increase in recent years, following the rise in threat
perceptions globally.
The Insurance Regulatory and Development Authority:
The IRDA takes care and provides supporting system to the Indian insurance industry. As per
the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA was
constituted by an act of parliament) specify the composition of authority.
The authority is a ten member team consisting of A Chairman, Five whole-time members and
four part- time members (All appointed by the Government of India).
The primary works of IRDA are:
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IRDA issues a certificate of registration to applicants, renew, modify, withdraw, suspend or
cancel such registration. It protects the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest, and settlement of insurance
claim, surrender value of policy and other terms and conditions of contracts of insurance. The
IRDA specifies requisite qualifications, code of conduct and practical training for intermediary
or insurance intermediaries and agents. It promotes efficiency in the conduct of insurance
business. It promotes and regulates professional organizations connected with the insurance and
re-insurance business.
The IRDA controls and regulates the rates, advantages, terms and conditions that may be offered
by insurers in respect of general insurance business not so controlled and regulated by the Tariff
Advisory Committee Under section 64U of the Insurance Act,1938 (4 of 1938) etc.
HEALTH INSURANCE
Life is full of surprise but what are those surprises turn out to be unpleasant ones?
Dismemberment due an accident, a dreaded disease, anything can happen to anyone, anytime,
the last thing a person need would want to bother about is where the treatment cost is going to
come from. So we need to be careful and well prepared at the same time.
To meet these uncertainties of life the General Insurance companies have presented a
unique innovative "The HEALTH INSURANCE". That covers much more than basic
hospitalization covers. These products are of two types in general: Individual Health coverage
and Family Health cover. The product is designed as such to protect the consumer against the
spiralling medical cost while at the same time ensuring most unforeseen casualties through a
wide spectrum of benefits. So that one can live worry-free and receive hassle - free medical care.
It covers for In-patient hospitalization expenses for accidents/illness including room charges,
Surgeon’s fees, investigation charges, cost of medicines etc. The stay in the hospital should
exceed a period of 24 hours. Out-patient treatment charges are allowed for certain ailments like
cataract from the second year), tonsillectomy and lithotripsy. These policies provides through a
unique Cashless Facility which gives the convenience of undergoing treatment in anyone of the
listed network hospitals (provided by the companies), without having to pay the hospital bills or
the Security deposits. Thus the consumers have to no longer worry about a lengthy claim process
for reimbursement of medical expenses. These policies are seen to provide financial assistance
for the consumer and to his/her family against Hospitalization Expenses towards diseases and
accidents in India along with host of value additions.
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It provides a basic medical cover for all illness (except for certain exclusion) and an optional
cover for providing additional sum Insured for CRITICAL ILLNESS like Heart Surgery,
Kidney Failure, Cerebral Stroke, Cancer, major organ transplantation. Risks are unavoidable in
personal life and in business, but can be managed by proper planning. Maternity expenses (After
nine months of the policy date) are assured up to a certain amount by some of the leading Health
Insurance companies. Cataract treatment cost is covered depending on the policies term. Pre-
hospitalization and Post-hospitalization expenses are paid to the insured for a period of which
varies from 30 to 60 and 60 to 90 days respectively. The policy cover provided for self, spouse,
dependent children and dependant parents. Pre-existing diseases are covered after certain years
of consecutive insurance with the companies. Family discount, premium discount and
cumulative addition on the sum assured are certain bonus which companies give to their
consumer if there is claim free continuation with the company policy.
Income tax benefits on premium paid up to Rs.15, 000/- Under Sec 80 D of IT Act. And
for senior citizen (65 yrs and above as per under IT ACT) Rs. 20000/-. Carryover of cumulative
bonus from previous insurer provided renewal notice from previous insurer is submitted & there
is no break in cover.
In case of treatment in Non-Network hospitals, re-imbursement will be made within 15
days from the date of receipt of all documents. This facility is available in certain numbers of
hospitals in India. Ambulance Referral Facility in times of need. Online Access – to our Website
for information and facility to upload your medical records on your own web space.24 hour help
line number to guide you in times of need
Bajaj Capital acts as customer partners, who help you to identify and understand various risks,
prioritize them and eventually manage them. It’s all about Protecting Earning Capacity, Health
Care, Disability cover and Asset Insurance. As a broker, the Bajaj Capital do not offer their
clients just a single option but multiple options available, and help them to select the most
appropriate one. Under this scheme a deduction up to Rs. 15,000/- (Rs.20, 000, in case of Senior
Citizens i.e. 65yrs and above as per IT ACT) is allowed in respect of premium paid by cheque
towards Heath Insurance Policy, like ‘Mediclaim’. Such premium can be paid towards health
insurance of spouse, dependent parents as well as dependent children.
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BASIC COVER: • Hospitalization: Room, Boarding, Surgeon Anaesthetist, Medical Practitioner,
Consultant, Specialist fees and Nursing expenses as charged in the hospital/nursing
home including Hospital Registration / Service charges within a limit of the company
assured sum in the policy (minimum hospitalization of 24hrs is must)
• Day Care Treatment: (i.e. Hospitalization less than 24 hrs.) Due to advancement of
technology, hospitalization expenses for certain diseases are also covered.
• Cost of Anaesthesia, Blood, Oxygen, Operation Theatre, Surgical Appliances,
Medicine & Drugs, diagnostic Materials and X-ray, Dialysis, Chemotherapy,
Radiotherapy, Pacemaker, Artificial limbs, Organs and other similar expenses.
• Domiciliary Hospitalization: treatment at home if the patient cannot be admitted to
hospital for lack of accommodations or the condition does not permit him/her to be
removed to hospital.
• Daily Allowance for the duration of the hospitalization
• Pre- Hospitalization expenses and Post – Hospitalization: Relevant expenses incurred
during a specified period (normally 30 to 60 days sum polices even extended days to
90 days), before and after hospitalisation the claim is payable.
• Critical Illness covered if the insured opts for the policy against it.
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Important Exclusion:
Some of the important exclusion under the policy are as under:
• Pre – existing diseases (from the date of enrolment)
• Diseases that commences during the first 30 days of inception of the policy.
• Treatment arising out of abortion, infertility etc.
• General debility, use of drugs or alcohol.
• Intentional self – injury or injuries due attempt to suicide.
• Cost of contact lens or spectacles and hearing aids
• External Medical equipment used as post hospitalization care.
• Any dental treatment unless requiring hospitalization.
• Any treatment done without spending 24 hrs in a hospital.
• Naturopathy treatment / local form of medication.
• For a person suffering from Hypertension/ Diabetes expenses on treatment of Heart and
Kidney and circulatory disorders.
• HIV and AIDS related medical conditions.
• War, strike, riot, nuclear weapons induced hospitalization
• Congenital diseases
• Treatment of mental illness
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COMPARISION CHART OF HEALTH INSURANCE(Chart 1.1)
Note: All the quotation are inclusive of service Tax. PSU = Public Sector Units
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USP/FEATURES ROYAL SUNDRAM
HEALTH SHIELD GOLD
PSU’s
MEDICLAIM
BAJAJ ALLIANZ
HEALTH GUARD
IFFCO-TOKIO
MEDICLAIM
AGE LIMIT 3month-75years 3month-80years
3month-55years 3month-70years
Reimbursement of Hospital bills due to illness or injury
YES YES YES YES
Cashless facility YES YES YES YES
Tax Exemption(under sec 80D upto Rs.15000 and up to 20000 for Senior Citizen *)
YES YES YES YES
Pre and Post Hospitalization Charges
Pre 30 and Post 60 days
Pre 30 and Post 60 days
Pre 60 and Post 90 days
Pre 60 and Post 60 days
Family Discount 10% for 3 or more person
10% for 2 or more person
10% for 2 or more person
5% for two person and 10% for three or more person
Free Health Check up
Not Available 1% of Average sum insured of four claims free year
Up to Rs 1000 after four free claims a year
1% of Average sum insured of four claims free year
Pre existing Disease cover(condition apply)
From 6th year onwards
From 5th year onwards
From 5th year onwards
From 5th year onwards
Pre Insurance Medical Test
60 years onwards Above 45 years
Above 45 years Above 55 years
USP/FEATURES ROYAL SUNDRAM
HEALTH SHIELD GOLD
PSU’s
MEDICLAIM
BAJAJ ALLIANZ
HEALTH GUARD
IFFCO-TOKIO
MEDICLAIM
Critical Illness Extension
Not Available Not Available Not Available Available
Single Woman Applicant
Not Covered Covered Covered Not Covered
Ayurvedic Treatment
Excluded Excluded Excluded Covered
Day Care Treatment Yes Yes Yes Yes
Daily hospital Allowances
Not Available Not Available Not Available Available
Proposer’s Age Cannot be more than 55 yrs
No such condition
No such condition
Cannot be more than 55 yrs
Medical Emergency and Personal Assitance Services
Not Available Not Available Not Available Available
SUM ASSURED Min Rs.75000, Max Rs. 5 lacs
Min Rs.15000, Max Rs. 5 lacs
Min Rs.50000, Max Rs. 10 lacs
Min Rs.50000, Max Rs. 5 lacs
Maternity Benefits Cover
Yes upto Rs 20000 NO No Maternity cover for clints Rs 20000 and for clients above Rs 2 lacs can avail 10% of the sum assured
PREMIUM for SUM ASSURED RS 1 lac
In Rs. In Rs. In Rs. In Rs.
At age 35 Yrs(approx)
2,158 1,547 1,633 1,477
At age 55Yrs (approx)
2,999 3,552 3,138 2,616
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COMPARISION CHART OF HEALTH INSURANCE(Contd.)
Note: All the quotation is inclusive of service Tax.
Page | 20
USP/FEATURES RELIANCE INDIVIDUAL MEDICLAIM
ICICI LOMBARD
HEALTH ADVANTAGE PLUS
AGE LIMIT
3month-65years
5years - 65years and renewal up to 70 years
Reimbursement
of Hospital bills due to illness or injury
YES Up to Rs 10,000 OPD bills
Cashless facility YES YES
Tax Exemption
(under sec 80D up to Rs.15000)
YES YES
Cumulative bonus 5% bonus for each claim free year
10% discount on premiums from 3rd year if no claim is made
Pre and Post Hospitalization Charges
Pre 30 and Post 60 days and post 60-90 days depending on plans
Pre 30 and Post 60 days
Family Discount 10% for 3 or more person 10% for 2 or more person
Free Health Check up Not Available For any one insured family member
Pre existing Disease cover(condition apply)
2/4 continuous after continuous renewal
From 3rd year onwards
Pre Insurance Medical Test
45 years onwards Above 55 years
Ayurvedic Treatment Excluded Excluded
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USP/FEATURES RELIANCE INDIVIDUAL MEDICLAIM
ICICI LOMBARD
HEALTH ADVANTAGE PLUS
Critical Illness
Extension
Covered Not covered
Single Woman
Applicant
Not Covered Covered
Day Care Treatment Yes No
Daily hospital
Allowances
Available Not Available
Proposer’s Age Cannot be more than 55 yrs No such condition
Medical Emergency
and Personal Assistance
Services
Available Not Available
SUM ASSURED Min Rs.1, Max Rs. 5 lacs Min Rs.2 lacs, Max.Rs.12 lacs.
Maternity Benefits
Cover
NOT AVAILABLE NOT AVAILABLE
PREMIUM for SUM
ASSURED RS 1 lac
In Rs. In Rs. (For Rs.2 lac)
At age 35 Yrs(approx) 700-900 15000(with OPD bills)
At age 55Yrs (approx) 1290-1490 15000(with OPD bills)
1.2 STATEMENT OF THE PROBLEM:
It is always very difficult to make insurance investment decisions in this world of investment
alternative companies.
It demanded investors to be knowledgeable and tact full regarding the insurance market. Since,
many insurance investments are introduced with in a very short span of time, people even having
lot of money are confused to invest their hard earning money in effective manner.
This confusion made researcher to choose this particular field study in this regard an effort is
made to put some light on different investment companies for the sake of bringing down the
confusion level among the investors.
In order to recommend a suitable Insurance company to an investor, one must be aware of the
needs of the customer and the importance of his attributes, the current insurance situation and
ascertaining attitude towards risk involved in an investment while he makes his Insurance
decision.
A descriptive study is conducted at Bajaj capital, Bangalore, with the major Health Insurance
Companies, to analyze the effectiveness of their Health Insurance.
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1.3 OBJECTIVE OF STUDY
A project cum Training is an essential part of MBA Curriculum. This study was
conducted on “A study of retail outlet for Bajaj Capital Insurance Broking Ltd.
(BCIBL) a unit of Bajaj Capital Ltd (BCL) at Rajajinagar, Bangalore.
On the following objectives studies undertaken are:
o To study the consumer preference towards Health Insurance.
o To study the wide spectrum of Health Insurance and its
polices by various company.
o To examine how the consumer in market rate the investment
in Health Insurance.
o To study the best sold policy feature in the market and
o To evaluate Bajaj Capital (Rajajinagar Branch) effectiveness
in selling of Health Insurance Products.
1.4 SCOPE OF STUDY:
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The scope of the study is limited to the BRANCH OF INDIRANAGAR at Bangalore
only. The companies, which issue Health Insurance, have been considered in the study.
The respondents have been mostly the clients and customers of BCL. The study is
focused on analysis of these companies on a single & same policy. The study is focused
primarily on analysis of various insurance avenues along with Health Insurance to study
the consumer preference towards Health Insurance with reference to insurance policies.
The findings will reveal about Insurance investments as a better option.
1.5 LIMITATIONS OF THE STUDY:
• Free, continuous and reliable information wasn’t always available.
• Lack of adequate information was a hindrance to arrive at a proper conclusion.
• Study restricted to Rajajinagar Branch (Bangalore city) only.
• The preference of consumers regarding various company policies may vary by their own
analysis and observations from time to time.
• Confidentiality of certain information was a hindrance to derive information conducive
for my project.
• The time span for the survey was short and hence only the major aspects are considered,
not all the aspects were considered.
• As the questionnaire was used to collect data, data might be unreliable as the
respondents’ might have been biased in answering the posed questions. The questionnaire
analysis is subject to respondent errors in responding.
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CHAPTER‐2
COMPANY PROFILE
Brief about the Company: Bajaj Capital is a truly independent and unbiased investment advisory company. It is among the
pioneers of the investment advisory and financial planning industry in India. It was established in
the year 1964. For over four decades, the Company has been serving Indian investors, it have
been helping people realize their aspirations by helping them make their wealth grow, and plan
their financial lives, and thus giving shape to the vision of its founder-chairman, Mr. K.K. Bajaj.
Bajaj Capital is one of India’s leading Financial Services companies offering Free Advice on
Investments, Insurance, Tax Saving, Retirement Planning, Financial Planning, Children’s Future
Planning and other services. It also has a wide range of products and services for Corporate,
High Net worth Individuals, and NRIs… all under one roof. At Bajaj Capital, They believe in
dreaming big. Dreams inspire them to excel. They ignite hope and kindle in the passion to stretch
their limits. They also believe that nothing can or should stop us from realizing one dream… and
financial constraints should be the last things to stop anyone, by helping them make their wealth
grow, and plan their financial lives.
Today, it is a one of the largest financial planning and investment advisory companies in India,
with a strong presence all over the country. It takes its pride in serving their customers – both
individual and institutional – and is known for our strong professionalism and work ethics.
There are a comprehensive range of services including financial planning and investment
advice, and the entire gamut of financial instruments and investment products of almost all major
companies, both public and private. In addition, they also provide investment assistance by
helping the customers to complete all the formalities, and keep regular track of their investments.
Page | 25
These services and products are delivered through our network of 109 Bajaj Capital
Investment Centers located all across 50 cities the country. They have 7, 00,000 individual
investors across the country. 3,000 corporate and institutional investors. And 1200 highly
qualified professionals - CAs, MBAs, CFPs, CSs, CFAs.
A SEBI-approved Category I Merchant Banker. It raises resources for over 1,000 top institutions
and corporate houses every year, and offer specialized services to Non-Resident Indian (NRIs)
and High Net worth Clients. As a true partner, they promise to use our knowledge for customers
benefit. Be it advice on the right insurance products or looking after your rights and interests in
case of a claim, they state that – “we’ll be by your side... whenever you need us.”
Bajaj Capital Group has Four Entities: Bajaj Capital Limited (BCL): A SEBI - approved Category I Merchant Banker, investment advisors and financial planners.
That's exactly where we at Bajaj Capital step in. They call it Risk Management. Where they help
their customers to identify the potential risks and pass some of them on to insurance companies.
It is considered as the customer rights to receive independent, unbiased and professional advice.
Bajaj Capital Insurance Broking Limited (BCIBL): As IRDA licensed Insurance Brokers, they are customer’s representatives unlike an agent who
represents an insurance company. At BCIBL, an IRDA licensed "Composite Insurance Broker"
bearing licence number CB 042/02. They enjoy the 'Preferred Insurance Broker' status with
many of the Insurance companies. This, in essence, translates into a greater benefit for
Customers. In fact, they enjoy a transactional relationship with almost all the Insurance
companies present in India. Therefore proud to say that many companies have come up with
insurance products based on our feedback. They have a strong operational and servicing team,
and an all-India reach. They also have the support of a strong IT infrastructure and responsive
call centres. As such, they are easily accessible.
Bajaj Capital Investor Service Limited:
Page | 26
An NSE member for Stock Broking (JUST TRADE).It aims to make investing easy, quick and
accessible. It offers advice and allows its customer to take advantage of a wide range of
investment avenues, including Equity, IPOs, Mutual Funds, Bonds, etc. What's more, the
customers can now invest in the choicest options from the comfort of their home and at the click
of their button.
Bajaj Capital Leasing and Finance Limited: Real estate in legal terms - that encompasses land along with anything permanently fixed to the
land such as: Natural resources, buildings etc. Investments are made in Real estate because of a
Reside in the Home. Tax planning, Wealth Creation, Regular Income Generation, Capital Gains
and Estate planning.
COMPANY KEY PERSON PROFILE: Mr. K.K. Bajaj Chairman
A visionary par excellence, a pioneer and a leader, Mr. K.K. Bajaj has been instrumental in
shaping Bajaj Capital’s emergence as one of India’s largest Investment Advisory companies.
He is a highly respected figure in the field of institutional and personal finance and Company
FDs. His emphasis on honesty, ethics and values are the guiding principles of the organization.
Mr. Bajaj is also a prolific writer and has written over 200 articles on diverse issues such as
Personal Finance, Economic Affairs, and Health.
Mr. Rajiv Deep Bajaj Managing Director
A qualified Financial Planner, Mr. Rajiv Deep Bajaj was the first to introduce the concept of
Financial Planning in India. In fact, he is the Founding Chairman of the Association of Financial
Planners (AFP). He is also amongst the first batch of 25 Certified Financial Planners (CFP)
designation holders in India.
Page | 27
A Post-graduate in Management and holder of an International Certificate for Financial Advisors
from the Chartered Insurance Institute, London, Mr. Rajiv Deep Bajaj has played a pivotal role
in expanding Bajaj Capital's reach across the country.
His youthful energy, dynamic leadership, vision and 16 years strategic management experience
in Banking, Financial Advisory, Insurance Broking and Financial Planning have strengthened
Bajaj Capital.
Mr. Sanjiv Bajaj Joint Managing Director
Mr. Sanjiv Bajaj started his career in 1995 as managerial trainee, worked on various projects
which included developments at alternate channel of distribution like Broker's associations...etc.
From here, he moved on to Investment Advisory services, which included understanding the
client's needs, and by using various tools of financial planning to offer them a solution to meet
his requirements.
Mr. Sanjiv Bajaj is versatile personality with diverse areas of interest. He is a Post-graduate in
Business Management with specialisation in Finance, and holds an International Certificate for
Financial Advisors from the Chartered Insurance Institute, London.
Thanks to him, Bajaj Capital is today the largest individual agent for LIC. Mr. Sanjiv Bajaj has a
keen interest in IT, and has played a major role in implementing the ERP software and E-
commerce activities in the company.
Mr. Anil Chopra CEO & Director
Page | 28
Mr. Anil Chopra is the Chief Executive Officer & Director of Bajaj Capital Limited; He joined
the Company in 1984. Mr. Chopra has been instrumental in expanding the branch network of
Bajaj Capital Ltd. all over India.
A Chartered Accountant and a Certified Financial Planner, Mr. Chopra is credited with
introducing international accounting and HR practices in the organization. His most valuable
contribution, however, has been in building up a financially literate society and making Bajaj
Capital a strong retail brand. He is considered an authority, and is widely sought after by the
media for quotes on key developments in the industry.
Bajaj Capital's Mission Statement :
The single focus of our organization is to be the most useful, reliable and efficient provider of
Financial Services. It is our continuous endeavour to be a trustworthy advisor to our clients,
helping them achieve their Financial goals.
Their Aim:
• To serve our clients with utmost dedication and integrity so that we exceed their
expectation and build enduring relationships.
• To offer unparallel quality of service though complete knowledge of products, constant
innovation in service and use of the latest technology.
• To always give honest and unbiased financial advice and earn our client's everlasting
trust.
• To serve the community by educating individuals on the merits of financial planning and
in turn help shape a financially strong society.
Page | 29
• To create value for all stake holders by ensuring profitable growth.
• To build an amicable environment that accords respect every individual and permits their
personal growth.
• To utilize the power of team work to function as a family and build as a seamless
organization.
Set of Values:
• “We believe in growing people, as the talent of every team member is a "National assets"
needs to be matured, utilized and recognized to the fullest and they are the one to get us
Permanent Profits"
• "To be conscientious and ethical in all; dealings by treating clients' money with same
importance as your retired Father's savings."
• "To utilize the power of team work to function as family and build a seamless
organization creating value for all the stakeholders."
• "To be worthy of trust of our valued clients as we believe that experience can be bought
but trust has to be earned."
The LOGO DEPICTS:
The logo depicts Lord Ganesha who is the source of all our values and ethics in business.
� The large ears of Lord Ganesha remind us to hear more. We listen carefully to our clients
to understand their needs.
� The weight of the trunk on the mouth symbolises silence. We work silently, without
blowing our own trumpet.
Page | 30
� The long trunk symbolises continuous exploration. We explore all avenues to provide the
best investment opportunities for our clients.
� The heavy posture of Ganesha symbolises stability. We help our clients to attain
financial stability through wise investments.
� Lord Ganesha is known as the remover of obstacles and bestower of prosperity. We
emulate His example and try our best to help our clients attain prosperity by proper
financial planning.
� The logo has a yellow background. Yellow is the colour of gold, which symbolises
wealth. According to Vedic lore, it is also the colour associated with Brihaspati, the guru
and counsellor of the Gods. We offer our clients sage counsel to make their wealth grow.
� The letters are in red. Red is the colour rajas – symbolising power and incessant activity.
It symbolizes our aggressive quest for your well-being and happiness.
� The white streak represents the trunk of Lord Ganesha. White is the colour of satva
guna, and implies our selfless commitment to your life.
MILESTONES:
The Achievements of Bajaj Capital:
Bajaj Capital has contributed to the growth of the Indian Capital Market at every step:
1965
In 1965, they were the first to innovate the Companies Fixed Deposit. Today, they are playing an
active role in the growth of the Indian Mutual Fund industry.
They are also working closely with private insurance companies to deepen India's insurance
market.
Page | 31
1964
Bajaj Capital sets up its first Investment Centre™ in New Delhi to guide individual investors on
where, when and how to invest.
India's first Mutual Fund, Unit Trust of India (UTI) is incorporated in the same year.
1965
Bajaj Capital is incorporated as a Company. In the same year, the company introduces an
innovative financial instrument – the Company Fixed Deposit. EIL Ltd. (Oberoi Hotels, then
known as Associated Hotels of India Ltd.) becomes the first company to raise resources through
Company Fixed Deposits.
1966
Bajaj Capital expands its product range to include all UTI schemes and Government saving
schemes in addition to Company Fixed Deposits.
1969
Bajaj Capital manages its first Equity issue (through an associate company) of Grauer & Wells
India Ltd.; right from drafting the prospectus to marketing the issue.
1975
Bajaj Capital starts offering 'need-based' investment advice to investors, which would later be
known as 'Financial Planning' in the investment world.
1981
SAIL becomes the first government company to accept deposits, followed by IOC, BHEL,
BPCL, HPCL and others; thus opening the floodgates for growth of retail investment market in
India.
Bajaj Capital plays an active role in all the schemes as 'Principal Brokers'
1986
Public Sector Undertakings (PSUs) begin making public issues of bonds MTNL, NHPC, IRFC
offer a series of Bond Issues. Bajaj Capital is among the top ranks of resource mobilizes.
Page | 32
1987
SBI leads the launch of Public Sector Mutual Funds in India. Bajaj Capital plays a significant
role in fund mobilization for all these players.
1991
SBI issues India Development Bonds for NRIs. Bajaj Capital becomes the top mobilize with
collections of over US $20 million.
1993
The first private sector Mutual Fund – Kothari Pioneer – is launched, followed by Birla and
Alliance in the following years. Bajaj Capital plays an active role and is ranked among the top
mobilisers for all these schemes.
1995
IDBI and ICICI begin issuing their series of Bonds for retail investors. Bajaj Capital is the co-
manager in all these offerings and consistently ranks among the top five mobilizes on an all-
India basis.
1997
Private sector players lead the revival of Mutual Funds in India through Open-ended Debt
schemes. Bajaj Capital consolidates its position as India's largest retail distributor of Mutual
Funds.
1999
Bajaj Capital begins marketing Life and General Insurance products of LIC and GIC (through
associate firms) in anticipation of opening up of the Insurance Sector. Bajaj Capital achieves the
milestone of becoming the top 'Pension Scheme' seller in India and launches marketing of GIC's
Health Insurance schemes.
Page | 33
2000
Bajaj Capital implements its vision of being a 'One-stop Financial Supermarket.' The Company
offers all kinds of financial products, including the entire range of investment and insurance
products through its Investment Centre’s. Bajaj Capital offers 'full-service merchant banking'
including structuring, management and marketing of Capital issues. Bajaj Capital reinvents
'Financial Planning' in its international sense and upgrades its entire team of Investment Experts
into Financial Planners.
2002
The Company focuses on creating investor awareness for Financial Planning and need-based
investing. To achieve this goal, the company introduced the International College of Financial
Planning. The graduates of this institute become Certified Financial Planners (CFPs), a coveted
professional qualification.
2004
Bajaj Capital obtains the All India Insurance Broking License. Simultaneously, a series of wealth
creation seminars are launched all over the country, making Bajaj Capital a household name as
Bajaj Capital Insurance Broking Ltd.
2005
Bajaj Capital launches 360° Financial Planning, a software-based programme aimed at
encouraging scientific and holistic investing.
2007
Stock Broking unit Just trade off –line was launched. Online Financial Planning formally was
opera table.
2008
Just trade – online was formally launched.
Bajaj Capital enters Real Estate in buying and selling of Properties through approved builders
and also making they avail loan facility from banks like ICICI and HDFC.
Page | 34
They have been providing to their customers:
One Stop Shop for All Financial Products:
Honest, ethical dealings.
Prompt courteous service.
Unbiased, independent and need-based advice.
Sound, research-based advice.
Need analysis before Recommendation.
Advisory before Product.
Unbiased and Research based Product selection.
Pan India reach.
Free Financial Health check up for all.
Authorized MIN (Mutual Funds Identification Number) processing service.
Services from PAN card to IT return Filing.
Point of Service for KYC (Know Your Customer)
In house SOFTWARE they have :
Financial planning.
Income tax calculator.
Crorepati Planner.
SIP calculator.
Page | 35
3.2 PRODUCT PROFILE
PRODUCTS RANGE:
Bajaj Capital does not have any financial products of its own. It provides financial services and
advice free to its esteemed clients. But it deals with various financial products offered by various
Companies under one roof.
Which are:
PRODUCT LINE:
Govt. Savings Schemes : PO and RBI
Life Insurance for All Companies
General Insurance for All Companies
Pension Schemes
Mutual Funds for all Companies
Fixed Deposits and Tax Saving Schemes
Equity IPOs
Cash Flow Planning
Investment Planning
Tax Planning
Children Future Planning
Retirement Planning
Risk Protection Planning
Real Estate Financing and Leasing
Company Fixed Deposits & Bonds
DMAT and Trading A/C
Real Estate & Home Loan
Page | 36
SERVICES
Investment Planning
Retirement Planning
Insurance Planning
Children’s Future Planning
Tax Planning
Short Term Cash Flow
Corporate Strategy:
We believe in Financial Planning approach from "Sales based advice to advice based
sales"
We offer 'Best of Breed' products to our clients after through due diligence.
We strive for stable but solid organic growth.
"We choose to be the tortoise in the Tortoise and Hare story"
Financial Planning is our competitive edge.
Our aim is to be a Financial Planner for the privileged few many.
Bajaj Capital has only one product "FREE ADVICE"
We choose from over 1400 financial products to implement our 'Advice'
MAJOR COMPETITORS in the market:
RELIGARE.
ANAND RATI SECURITIES.
KARVY THE FINAPOLIS.
INDIA BULLS
WAY 2 WEALTH.
Page | 37
INDIA INFOLINE
CHAPTER 4
RESEARCH METHODOLOGY
Page | 38
CHAPTER 4
RESEARCH METHODOLOGY
RESEARCH DESIGN
We define marketing research as the systematic design, collection, analysis, and reporting of data
and findings relevant to a specific marketing situation facing the company.
METHODOLOGY OF RESEARCH: The researcher has gathered secondary data and primary data. Secondary data are data that were
collected from which was available from the company website, prospectus and journals. The
Primary data were freshly gathered for a specific research project through questionnaire and
telephonic interview. An analytical research was carried out first to gain insight and proper
understanding of the Health Insurance and its different parameters connected. This was done
through personal interaction with the clients and other stakeholders at Bajaj Capital.
This was followed by a comparative study analysis between the insurance companies. Several
graphs and tables were prepared for presenting the findings.
Sources of Data Collection: The study was done based on the collection of Primary and Secondary Data. Primary Data: Primary Data was collected with the use of questionnaire and personal interaction with the
company employees; walk in customers and existing clients and through telephonic interview.
{Specimen of the questionnaire is attached in APPENDIX}.
Secondary Data:
Page | 39
Secondary data was collected by: - Journals, Census, Bajaj Capital database, web links and
companies prospectus (details are attached in Bibliography of this project).
Tools and techniques: Questionnaire was used as a tool to collect primary data. The secondary data were collected by
journals, websites and from company prospectus.
Type of Research: Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research do not answers the questions
who, what, where, when and how.
Although the data description is factual, accurate and systematic, the research cannot describe
what caused a situation. Thus, descriptive research cannot be used to create a causal relationship,
where one variable affects another. In other words, descriptive research can be said to have a low
requirement for internal validity.
SAMPLING PLAN After deciding on the research approach and instruments, the marketing researcher has designed
a sampling plan.
1. Sampling unit:
The target populations that will be sampled are the existing clients of BAJAJ CAPITAL at
Rajajinagar Branch.
2. Sample size:
Samples size is estimated by using the statistical tools. As the population is finite (i.e.9000 as on
15/06/2010), this is size would provide good reliability, with a credible sampling procedure.
Thus the researcher has used the formula to select the size of population. (The formula is stated
below)
Page | 40
3. Sampling procedure: The sampling method was employed to collect the data. The population is collected from Bajaj
Capital clients, and the researcher draws a sample of 165 persons by using the formula:
n = Z2α2N / (N - 1) e2 + Z2 α2 where, n = sample size Confidence level Z = 95% (1.96), Standard deviation α = 0.66 (as n-1/6 where n = 5; thus 5-1/6 = .66), Error e = 0.10 (i.e. 10%) To collect the response of questionnaires from the clients the researcher used telephonic
interview and direct interview method. Probability sampling has been allowed so that the
calculation of confidence limits for sampling error. A sample size of 165 respondents was taken.
The sampling units were the walk in customers, clients of Bajaj Capital Ltd. at Rajajinagar
branch, Bangalore. The population (9000) for which this sample size (165) was considered a fair
representative of the above – mentioned area.
OPERATIONAL DEFINATIONS OF STUDY:
• Risk: Risk in terms of Health Insurance refers to unpredictable diseases or injuries that
the insured may have.
• Premium: The fee paid by the insured to the insurer for covering the risk.
• Health Insurance: Insurance that assures a sum of money against the treatment of a
insured health and injuries.
• Critical Diseases: diseases which are usually very expensive and require critical
operations. E.g. Cancer, Transplantation of Kidney, Heart, bypass surgery or coma etc.
Page | 41
CHAPTER 5
DATA ANALYSIS & INTREPRETATION
Page | 42
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F
have sho
Are you sa
SATISFIED
is:
rom the tabl
rom the Baja
retation:
rom the gra
wn dissatisf
tisfied wit
D
le, we can fi
aj Capital.
aph, we can
faction with t
th the serv
NOT A29
nd out that t
understand
the services
vices provi
T ALL M9
the major co
that out tota
they avail fr
ided by th
NOT MUCH N34
onsumer hav
al sample siz
rom Bajaj C
he Bajaj C
NEUTRAL 3
e shown sati
ze (i.e. 165
apital Ltd.
apital Ltd
Page
YES 75
isfaction wit
persons) on
d.?
YESVERY
MUCH24
th the
e | 52
ly 63
03
YEAR
01/04/2008 31/03/2009
Analysi
F
Indiranag
Indiranag
Interpr
F
the finan
O
TOTAL
134
is:
rom the tab
gar Branch o
gar Branch L
retation:
rom the pie
cial year 200
SALOf BCIBL
HEALTHINSURANC
43
ble, we can
only 24% (i.
Ltd.
chart we ca
06-2007.
LES ANAL at Rajaji
H CE
MALE
35
find out th
.e. 43) are co
an understan
ALYSIS (2inagar Bra
E FEMAL
8
hat out of th
onsumers of
nd the Health
006-2007)anch, Ban
LE ROYASUNDR
24
he total Gen
f Health Insu
h Insurance
) ngalore.
AL RAM
ICLOM
4 1
neral Insura
urance throu
is not havin
Page
CICI BARD
PSU
14 3
ance only by
ugh Bajaj Ca
ng a major sa
e | 53
U OTHER
2
y the
apital,
ale in
R
GENDE
Analysi
F
ranch B o
Interpr
F
among th
ER WISE C
is:
rom the cha
only 19% (i.e
retation:
rom the pie
he female ge
CONSUME
art, we can
e. 8) consum
e chart we c
enders while
ERS
find out th
mers are fema
can understa
the major p
at out of th
ales while th
nd the Heal
art of consum
he total Hea
he rest 81% (
lth Insurance
mer is forme
alth Insuranc
(i.e. 35) are m
e is not hav
ed by the Ma
Page
ce in Indiran
males.
ving a major
ale genders.
nagar
e | 54
r sale
HEALT
nal
A ysi
F
consume
undaraS m
Interpr
F
is well pr
TH INSURA
is:
rom the tab
rs are even
m has 24 ins
retation:
rom the grap
referred by t
ANCE CO
ble, Royal S
n not equiv
ured in a yea
ph, we can u
the consume
OMPANIES
undaram ha
valent to th
ar.
understand t
rs of BCIBL
S AND NU
as a lead in
he Royal Su
the policy of
L (a unit of B
UMBER OF
the market,
undaram. Th
f Royal Sun
Bajaj Capital
F CONSUM
PSU: p
the other p
hrough BCI
ndaram has b
l Ltd.)
MERS
Page
public sector un
players comb
IBL, The R
best policy w
| 55
nits
bined
Royal
which
e
03
YEAR
01/04/2007 31/03/2008
Analysi
F
aRajajin g
Rajajinag
Interpr
F
the finan
of differe
TOTAL
153
is:
rom the tab
gar Branch o
gar Branch L
retation:
rom the pie
ncial year 20
ent policy.
SALof BCIBL
HEALTHINSURANC
42
ble, we can
only 22% (i.
Ltd.
chart we ca
07-2008 as t
LES ANAL at Rajaji
H CE
MALE
39
find out th
.e. 42) are co
an understan
the major po
ALYSIS (2nagar Bra
E FEMAL
3
hat out of th
onsumers of
nd the Health
ortion of gen
008-2010)anch, Ban
LE ROYASUNDR
32
he total Gen
f Health Insu
h Insurance
neral insuran
) galore.
AL RAM
ICLOM
2
neral Insura
urance throu
is not havin
nce (i.e. 78%
Page
CICI PSBARD
U
1 1
ance only by
ugh Bajaj Ca
ng a major sa
%) has consu
e | 56
U OTHER
8
y the
apital,
ale in
umers
R
GENDE
Anal
ysi
F
and male
Interpr
F
Insurance
concentra
HEALT
ER WISE C
is:
rom the tabl
e is 39 (i.e.93
retation:
the abrom
e are male a
ate on this g
TH INSURA
CONSUME
le, we can fi
3%) of the to
ove pie-cha
and female a
ap of male a
ANCE CO
ERS
ind out that o
otal consume
art it can be
are only 3 (i.
and females.
OMPANIES
out of the to
ers in the He
e understood
.e. 7% of the
S AND NU
otal consume
ealth insuran
d that the m
e total consu
UMBER OF
er only 3 (i.e
nce.
major consu
umers). The
F CONSUM
Page
e.7%) are fem
umers for H
company sh
MERS
males
Health
e | 57
hould
Analysi
F
Sundara
consume
m
the consu
Interpr
F
is preferr
is:
rom the tab
rs are even
m has 32 ins
umers.
retation:
rom the grap
red by the co
ble, Royal S
n not equiv
sured in a ye
ph, we can u
onsumers of
undaram ha
valent to th
ear, and ther
understand t
BCIBL (a u
as a lead in
he Royal Su
e is no even
the policy of
unit of Bajaj
the market,
undaram. Th
n close policy
f Royal Sun
Capital Ltd.
PSU: p
the other p
hrough BCI
y which is m
ndaram has b
)
Page
public sector un
players comb
IBL, The R
more preferre
best policy w
| 58
nits
bined
Royal
ed by
w
e
hich
CHAPTER 5
FINDINGS
Page | 59
CHAPTER 5
FINDINGS ndings from the analysFollowing are some of the fi is and interpretations of the
parameters or features studied.
Through Primary data (Ques inagar Branch, Bangalore.tionnaire) at Rajaj
olicy is lagging behind among the consumers.
3. The preference of Health insurance among consumer is well balanced.
th Insurance in
um insured are
e of the Health insurance benefits are among consumers is high.
ailability of the products through Bajaj Capital ltd. is less percentage among
umer are satisfied in major percentage with the services of Bajaj Capital
Throu t Rajajinagar Branch, Bangalore
1. The Health Insurance p
2. Royal Sundaram leads the market in the Health Insurance at Rajajinagar Branch.
4. The major percentage of consumer feels it necessary to have a Heal
present days.
5. The consumers dissatisfaction with the level of premium paid against s
high.
6. The knowledg
7. The consumers are even aware of the Tax benefits under sec 80D in high percentages.
8. The av
consumers.
9. The consumer are well balanced in their perception that Bajaj Capital has made them
easier to select the financial products
10. Though cons
ltd.
gh Secondary data (sale analysis) a
he total sale has increased for General Insurance, but Health Insurance policy
2. The major number of consumer is male. ale
55 tables)
1. T
sale remains same (in fact one consumer was less)
Females are not even 20% of the m
consumers. And this year the female consumer has further decreased to below
10% of the male consumers (with ref. to pg 52 and
Page | 60
3. Royal Sundaram has successfully remained the leader in acquisition of consumer
in the last two years though BCIBL. This year the sale hiked from 24 to 32
policies.
UGGESTIONS & RECOMMENDATION
S
Page | 61
SUGGESTION AND RECOMMENDATION
he suggestion and recommendation that is preferred are:
dents conscious. Along with the advice for
ld be equally given a portion of the
NGALORE
T
Customer and should be made more Health and cciA
investment and life insurance the Health insurance shou
investment. There is huge untapped market in the city as the chart (below) reveals the last three
years statistics of Death, Accidents and Injuries respectively. Through which the calculation for
2008 (using regression method) shows that around 9000 injuries and accidents may occur this
year in the city. Every one residing here has an equal probability of being the victim. The
awareness should be conveyed to the mass through the marketing peoples.
A CHART TO SHOW THE ROAD STATISTICS IN BA
YEAR 2007 2008 2009 2010* DEATH 836 915 981 1056 ACCIDENTS 5899 6046 6589 6868 INJURIES 1937 1911 2157 2222 (Source: Bangalore T olice )raffic P
2010 figures are based on regression calculation method) (*
of creating market for the Health Insurance.
ced about the product. The benefit will
pany is a shield for all the products to find shelter here.
ompany should concentrate on the 25-30 year age group, because this is the time when people
show m
he corporate presentation would be an effective T
The Company Head should be approached and convin
attract the corporate heads as the Health and the accidents of the employee would be taken care
of by the Insurance companies, thus leading to the Insurance of mass of people. It is always
patience that leads to success. There should be slow but continuous effort to convince the
customer and convert them to an active client. They may not be ready to Invest in the very first
day they do need a time to decide.
The reputation of the com
C
Page | 62
ore interest in investment and are rasher in driving.
The Institution should be consulted and the executive should convince the students of PG levels
to have Health Insurance.
The health hazards like pollution through automobiles and industries which are adversely
ffecting environment, FOOD HABITS (chewing tobacco and smoking etc.) and many other
a
food changes can lead to ill health of any person. And thus by taking these policies they would
be reducing the financial constraints of treatment.
Page | 63
ONCLUSION C
Page | 64
CONCLUSION:
ealth Insurance has a unique feature, i.e., risk cover for the Health. Even though there is no
laim, but it is an important instrument in reducing the financial burden of
The study reveals that the major Health Insurance market at Indiranagar Branch,
angalore region is highly covered by Royal Sundaram when compared to others. The unique
feature
know what all are the products that the consumer can avail from the company. Bajaj Capital has
H
return if there is no c
the insured. As the sum assured is usually very high compared to the premium paid for it. The
insured will even not feel the burden of paying the premium when they are made aware that the
premium amount up to Rs. 15000 and for senior citizen (65 years and above as per IT Act) up to
Rs. 20000 are exempted from Tax under sec 80D. There are various plans available in the market
with different features and policies. By entry of private insurance players in the market, there are
new and innovative products to attract the peoples, each company’s policy is better than the other
policy in some terms. People who are aware of the investment policies and its general benefits
usually go for Health Insurance. The product is targeted to the daily bike riders and drivers, for
accidental insurance and in general it envelopes the whole population who is above the age of 3
month with a guardian till 18 years by the minor and up to maximum of 70-80 years (varies
according to companies).
B
Page | 65
s and policies, like; the maternity cover, no pre-insurance medical check up to the age of
60 years. Cumulative bonus of 15% per claim free year etc. has increased consumer preference
towards this policy through BCIBL. And moreover the people rate BCL as the easiest and
reliable mode to avail these companies product. Thus they are having a clear edge over
competitors in Bangalore. The just-in-time and effective and efficient delivery is highly
appreciated and the recent award for being ranked in 24th as a best place to work in India shows
the level of satisfaction the employee achieve in this company. Thus the retention of manpower
is high in BCL. After sales service, the settlement of claim and other after sales service is
efficiently done by the experts’ employee of this organisation. Comparative advantage of Bajaj
capital sales personals are that they keep an eye on the whole market and to approach the client
who even has an interest over any financial products. Two way communications occurs for
transparency in business. Though Bajaj Capital has limited advertisement to let the consumers
an edge as they have no product competitors and thus consumer has an unbiased advice for
product. They act on their customer behalf and advice them the policy which fits their needs and
profile. The effective marketing has laid the strong Brand Value in the market. The consumer
feels the advice reliable and trust BCL AND ITS ALL ENTITIES.
Page | 66
APPENDIX
Page | 67
QUESTIONNAIRE
Dear Sir/Madam this following questionnair is an attempt to study the awareness and
preference of Health Insurance and to m pany’s policy. You are
earnestly requested to fill it up in a spirit to help us.
b. If yes, which company Health Insurance Policy you have?
Bajaj Allianz ICICI Lombard
Any oth
N s
d. s necessary in present days where diseases and accidents
Not much Neutral Yes Yes very much
f.
much
g.
e
easure the effectiveness com
a. Do you have any Health Insurance Policy?
Yes No
Royal Sundaram PSU’s
er, please specify__________
c. If no, would you prefer to have any Health Insurance?
Not At All uch eutral Ye Yes very much ot m N
Do you think Health Insurance Policy i
are frequent?
Not At All Not much Neutral Yes Yes very much
e. Are the Health Insurance Policy premiums against the sum assured satisfactory?
Not At All
Are you aware of the benefits of having Health Insurance Policy?
Not At All Not much Neutral Yes Yes very
Are you aware of the Tax Savings under Sec 80 D against the prem f Health Insurancium o e
ll Not much Neutral Yes Yes very much
i. e
ch
much Neutral Yes Yes very much
ex: Male Female
Thank You
Policy?
Not At All Not much Neutral Yes Yes very much
h. Are you aware of the Products available through BAJAJ CAPITAL?
Not At A
Having Bajaj Capital as an advisor cum distributor for all the financial products makes th
selection easier for you?
Not At All Not much Neutral Yes Yes very mu
j. Are you satisfied with the services provided by the Bajaj Capital?
Not At All Not
Name : S
Age :
Page | 68
Page | 69
IBL GR PHYB IO A Books: ‐
• Kotler, Keller, Koshy, Jha, “Marketing Management” - Pearson Education, 13th Edition, e 647
“Strategic Brand Management” - Eastern Economy Edition, 2nd Edition, Page 788
ld “Creating Powerful Brands” – Elsevier, 3 Edition, Page 467 C
he
: EVALUATION OF TRAFFIC
MANAGEMENT MEASURES IN
ON
WEBIOLOGY :
: //dcr.wealthmaker.in//
: www.irda.com
Pag• Kevin Lane Keller
• Chernatory & McDona rd
• .R. Kothari, Research Methodology, Pearson publication ltd,3rd Edition.
Publis d Materials : Companies Prospectus
ACCIDENT REDUCTI
UNDER MIXED TRAFFIC
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